Ocoee Extends Over-65 Plan 1 More Year

August 27, 1989|By Karen Samsock of The Sentinel Staff

OCOEE — Older residents can breathe a sigh of relief. The Over-65 Program looks like it will continue at least one more year.

City commissioners say the costly program, which gives qualifying senior citizens tax breaks and free services, is worth continuing even though it means raising taxes. They plan to study the program in October.

''The existing people in the program got a handshake from former commissioners,'' Mayor Tom Ison said at a special commission meeting Tuesday. ''I don't think this is any time to cut things out on them.''

Providing free garbage and water and a break from city property taxes to qualifying senior residents is expected to siphon $135,000 from the city's general fund next year - half of what a proposed increase in property taxes is predicted to net in revenue.

The city commission is scheduled to vote on a 33 percent tax rate increase next month. The higher rate - applied to higher property values in Ocoee - could mean the average homeowner in the city will pay $85 more in property taxes next year.

For example, this year, the owner of a $75,000 home with a $25,000 homestead exemption paid about $150 in taxes.

Next year, that same house is likely to be worth about $83,775 because the average property values in Ocoee have increased 11.7 percent. If the commission raises the tax rate from 3 to 4 mills, that homeowner would pay $235 in taxes.

The increase from 3 to 4 mills would mean about $830,700 in revenue for the city. A mill is $1 for every $1,000 of taxable property value.

No senior residents spoke on behalf of the Over-65 Program during Tuesday's special session. Public hearings are Sept. 11 and 26.

City commissioners, who have already proposed a 67 percent increase in water rates in addition to the millage, said they want to continue the program, which began in 1975 and was used to draw people to Ocoee. But the program is a drain on the city's finances and it needs to be modified, such as possibly setting a cut-off date to prevent more people from applying for the program, they said.

About 440 retired homeowners in the west Orange County city of 12,500 have qualified for a 100 percent rebate on property taxes and pay nothing for water, garbage collection and cemetery plots. Although some cities give senior citizens discounts on utility bills, Ocoee is believed to be the only one in the state that gives them property tax breaks.

To qualify, residents must be 62, must have lived in the city at least five years, own a home and collect Social Security benefits. To get free water service, they must use less than 15,000 gallons a month. The average resident uses 10,000 gallons a month.

Commissioners said they did not have enough time this year, with a new city manager and a newly proposed capital improvement plan, to study the issue. But something will have to be done next year, they said.

''This has been a thorn in my side for some time,'' Commissioner Lester Dabbs said.

''I just want to see it taken care of,'' Commissioner Vern Combs said. ''It's like growth: You don't control it, you lose it.''